April 25, 2024

Bitcoin broke the $ 50,000 mark. What's next?

The cost of the most popular cryptocurrency yesterday exceeded $50,000 - an important psychological mark. EarlierThis level was $20,000, after which we received an almost threefold increase.

Increase in the number of dollars in the economy thanks toThe Fed's stimulating policy, low interest rates on loans and fiscal stimulus - involuntary unemployment benefits - are fueling investor interest in risk and asset diversification.
Any reasonable investor will always invest in those assets that, in his opinion, will bring the maximum ROI with adequate risks.

Even 20+ year bond yields are less than 2%with expected inflation at 3%. The real return is negative, while at the same time, rising inflation means an increase in household spending and an increase in company income, which leads to an increase in the price of their shares. Therefore, shares will be a more interesting asset for investment and, despite the high level of investor greed, shares will continue to rise.

At the same time, for diversification, investors placed part of their savings in cryptocurrency assets. In particular, now these are Bitcoin and Ethereum, which occupy 80% of the Bloomberg Galaxy Crypto Index.
Will Bitcoin rise to $150,000 or more? It will, but after a deep correction to $20,000-25,000.